Regional Tasmania’s double-digit home value uptick

TAS_SOLD-ON_PIX BY ROGER_APR17

While prices are climbing in regional Tasmania, these markets are often still more affordable than the capital city. Picture: ROGER LOVELL

REGIONS outside of Greater Hobart are among the nation’s strongest performing property markets, says a new national report.

The REA Insights Home Price Index Report for February found that across Australia price growth in regional areas (9.6 per cent) was double the growth in capital cities (4.8 per cent).

In Tasmania, the regional area recorded one of the largest annual changes in home values with a 11.2 per cent uptick, only a stitch behind regional Victoria at 11.3 per cent.

Cameron Kusher, REA Group director of economic research.

REA Group director of economic research, Cameron Kusher, described Hobart and regional Tasmania as some of the best performing markets in Australia.

Mr Kusher said regional areas recording stronger growth than the city spoke to Hobart’s affordability issues and its lack of stock available for sale.

“There is a cost of housing disparity between Hobart and elsewhere in the state,” he said.

“In our weekly sales volume data, most states have experienced really strong growth compared to a year ago but the figures have barely budged in Tasmania.

“In the first nine weeks of the year, sales in Tassie are up 5.1 per cent, but nationally they are up by 29.3 per cent.

“There is a tightness of supply and maybe some cautiousness from property owners.”

The report showed Hobart houses had recorded 10.3 per cent annual growth at a median price of $535,000. The unit sector grew by 8.3 per cent year-on-year to a median of $400,000.

In regional areas, house values increase by 12.2 per cent with the median reaching $360,000 while unit growth was more modest at 3.5 per cent and a $290,000 median, which was the cheapest in the nation.

Hobart, a city where a $5m Battery Point home can be sold in just 24 hours.

Mr Kusher said while prices have risen substantially in Hobart, it was still more affordable than many cities.

“I’m expecting pretty strong price growth this year and potentially into 2022,” he said.

Meanwhile, a new report from CoreLogic placed Hobart’s median dwelling value higher than Brisbane, Adelaide, Perth and Darwin.

Reports from local agents reveal a market where it has become common to present multiple offers to home sellers that can stretch into the tens or hundreds of thousands over a property’s starting price.

PRD Hobart director Tony Collidge said prices will only climb higher while there is such a substantial imbalance between the demand for Tasmanian housing and the historically low level of stock in the marketplace.

Experts from banks and investment firms have forecast double-digit growth for the Apple Isle this year and next year.

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